Trade

Wool prices fall again, but demand lifts from India and Europe on last sale day

Sheep Central, July 10, 2015

wool bales dec15-14WOOL prices finished with a positive burst on the last day of the current selling season, with renewed orders from India and Europe.

However, AWEX senior market analyst Lionel Plunkett said it was another week of losses after sharp falls over the past month, with the AWEX-EMI slipping 10 cents to 1221 cents clean over the two days of sales in Sydney, Melbourne and Fremantle.

“However, the EMI slowed its descent at this sale, and even gave a positive sign at the end of the week when it firmed one cent on the final day and breaking a nine-day losing streak in the EMI.”

The EMI in US dollars was down 29 cents to US913 cents with the Australian-US dollar exchange rate at US74.75 cents, down 1.73 cents. Brokers passed in 8.7 percent of the 39,858 bales offered.

In Australian Wool Innovation’s Weekly Market Review, trade consultant Scott Carmody said buyers took to the relatively large offering on the final day with gusto, with widespread buying interest being evident.

“Renewed interest was forthcoming from India and Europe, and to a lesser extent China, who were possibly distracted by the share market ructions in their country.

“Top makers from all areas also appeared to be keener in their purchasing,” he said.

Three centres opened on a negative footing

Mr Plunkett said the three selling centres initially opened the week on a negative footing when prices were mostly 15-20 cents cheaper.

“Differences were evident across the microns however, with the finer microns in Melbourne as much as 40 cents cheaper, while Fremantle managed a lift in prices for the broader microns at its single-day sale.”

On Thursday there were variations between the selling centres, with Sydney gaining a little ground while Melbourne softened by a few cents.

“Despite the losses during the week there was still strong support for selected better spec types.

“Best style and average spinners testing 40-50Newtons/kilotex increased in value, stretching out their premium over the lower spec types, which generally closed in negative territory for the sale.

“Merino skirtings were initially lower before good support on the final day saw them consolidate and finish on a firm note,’ he said.

Mr Plunkett said crossbreds also edged higher on Thursday, resulting in the broader microns closing ahead for the week while the limited finer microns finished marginally lower.

“Merino cardings closed out the sale on a firm note after significant falls on the opening day.

“The Merino carding indicators were as much as 30 cents cheaper for the week,” he said.

The physical market will now be in annual recess for three weeks with sales recommencing in Sydney, Melbourne and Fremantle in the first week of August.

Sources: AWEX, AWI

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